Overview
- Trump said on Truth Social he would impose a 100% tariff on all goods from Canada if Ottawa completes a trade deal with China, warning Canada would not be used as a “drop off port” for Chinese products.
- Canada recently announced a preliminary strategic partnership with China that would allow up to 49,000 Chinese electric vehicles at a 6.1% most‑favored‑nation rate while China lowers tariffs on Canadian canola and other agriproducts.
- The threat marks a reversal from Trump’s January 16 comment that it was “a good thing” for Prime Minister Mark Carney to reach a deal with China.
- Key details remain uncertain, including what would qualify as a “deal” to trigger the tariff and how such a measure would interact with USMCA exemptions after prior U.S. tariffs on some Canadian goods rose as high as 35% in 2025.
- The dispute escalated after Carney’s Davos speech on a fracturing world order and Trump’s withdrawal of Canada’s invitation to his “Board of Peace,” with separate Europe‑directed tariff threats on hold following a Greenland framework announcement.